Answear.com Sa · GPW:ANR
Answear.com Sa — H1 2021 Earnings Presentation
17 slides from Answear.com Sa's earnings presentation, September 2021
Slide 1: Answear.com S.A. Investor presentation – Q2 2021 results
Answear.com S.A. Investor presentation – Q2 2021 results SEPTEMBER 2021
Slide 2: Summary H1 2021
Summary H1 2021 Accelerating growth, further improving financial performance and operating ratios. Revenue growth Gross margin increase Dynamic EBITDA growth compared to 40.7% 56% Revenue in H1 2021 amounted to PLN 44.9% in 1H20, increase in margin on sales by value from PLN PLN versus 1H2020 PLN 12
Slide 3: Entry to the Greek market
Entry to the Greek market Consistent building of e-fashion leader in CEE region The Greek market The fastest delivery in CEE. „Customer-centrism” ▪ One of the largest markets in the CEE region ▪ Relatively wealthy with booming e-commerce and relatively little 24h competition Cracow ▪ High awareness
Slide 4: Key events in Q2 2021
Key events in Q2 2021 Moving to a new photographic studio Celebrating 10 years of Answear.com ▪ Moving to a 4 times bigger studio ▪ Special limited collections for Answear.com customers, prepared ▪ Making product films by major brands ▪ An expanding dedicated team of photographers, graphic ▪ Limited
Slide 5: Development of the product range
Development of the product range Accelerating growth, optimising the offer to maximise margins and sales profitability Increasing the range of offerings Concentration on Premium segment Premium brands Mid-market range Budget brands #SKUs on offer (in thousands) including Answear LAB ▪ Answear dynami
Slide 6: Answear LAB
Answear LAB Objective: higher margins, differentiation from competitors, attracting customers Basic information Sales (PLNm) SKUs number (thou.) Growth of 8,9 9,4 26,8 Answear LAB ▪ Established in 2017 22,7 6,0 ▪ Collection characteristics; the latest trends, best-selling products, in 14,5 12,7 13,6
Slide 7: Operational indicators
Operational indicators Significant improvement in key KPIs catalyses growth in sales and company profitability Number of visits (mn) Conversion coefficient ▪ Systematic increase in the number of visits to 139 2,38% 2,21% the platform, on average 12 million 116 1,86% 1,78% 1,84% 1,79% visits/month we
Slide 8: Operational indicators
Operational indicators Regularly improving cost efficiency of the business % of returns (1) % of Logistics costs (2) % of Marketing costs (2) 31,2% 31,40% ▪ Maintaining the return ratio stable, while 28,8%28,6% 29,3% increasing the scale of operations at home and abroad 24,90% ▪ Optimisation of logi
Slide 9: Financial results
Financial results Growing and establishing profitability provides the opportunity to further scale the business Total revenue (PLNm) Net profit [PLNm] EBITDA [PLNm] y-o-y growth gross margin % EBITDA margin % ▪ Answear dynamically increases sales, 31.6% 55.7% 41.6% 41.6% 40.7% 44.8% 3.1% 7.4% 7.0% 6
Slide 10: Financial results
Financial results On-line sales (million PLN) by month indicate strengthening of Answear.com position and change of consumer preferences, systematic transition of customers from off-line to on- line channel 70,0 67,5 ▪ In 2Q2021. The company reported an increase in online sales compared to Q1 sales
Slide 11: Financial results
Financial results Geographic diversification allows to effectively build business scale Revenue by segments EU countries outside Poland (PLNm) Countries outside EU (PLNm) Poland (PLNm) y-o-y growth y-o-y growth y-o-y growth ▪ Geographically diversified sales, where Poland is the largest market with
Slide 12: Financial results
Financial results Investment expenditures (million PLN) to ensure further dynamic development in the coming years 20 0,7 18 0,4 2,8 ▪ Major capital expenditure was incurred in 2019 16 to move to a new warehouse near Krakow and equip it with a four-storey mezzanine 2,2 14 ▪ In 2020, CAPEX expenditure
Slide 13: Financial results
Financial results Increase in the "return" rate, increasing customer loyalty and retention 81% Online sales by cohorts (million PLN) 528 mn ▪ Answear has dynamically increased its sales in mn Online sales by cohort (1) % Recurrence rate (2) recent years and has consistently improved its 74% return r
Slide 14: Development strategy
Development strategy Main pillars of further development of Answear Expand Sales growth in Foreign Own brand Development plan offer Current markets expansion development More products in the Potential for margin 130 million Penetration of new range improvement population markets > 150 thousand SKUs
Slide 15: Foreign expansion
Foreign expansion New markets Greece and Croatia in the second half of 2021 Other Baltic and Balkan countries to be launched 2022-25 Legend Current markets Planned directions - 2021 Planned directions - 2022-25 Potential directions 15
Slide 16: Summary: Why Answear?
Summary Why Answear? We it! ▪ Significant strengthening of the brand position in the market. ▪ USP & Operational Excellence reflected by quickest possible delivery with cross border logistics and – at the same time - limited carbon footprint, cost efficiency, in-house ecommerce system, loyalty progr
Slide 17: Thank you for your attention
Thank you for Feel free to contact us: investor.relations@answear.com your attention p.strzyzewski@innervalue.pl 17